Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Allocation of federal and state income taxes between current and deferred portions is as follows:

The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows:


	2017		2016		2015
	Amount	Percent of Pre-Tax Income	Amount	Percent of Pre-Tax Income	Amount	Percent of Pre-Tax Income
Expected income tax expense at
federal tax rate	$ 5,728	35.00%	$ 3,994	34.00%	$ 3,392	34.00%
State taxes net of federal
benefit	1,096	6.70%	796	6.78%	647	6.49%
Nondeductible expenses	255	1.56%	37	0.31%	40	0.40%
Nontaxable income	(376)	(2.30%)	(375)	(3.19%)	(398)	(3.99%)
Provisional deferred tax adjustment related to reduction in U.S. federal statutory income tax rate	2,740	16.74%	-	0.00%	-	0.00%
Other	(286)	(1.75%)	(36)	(0.31%)	(48)	(0.48%)

	$ 9,157	55.95%	$ 4,416	37.59%	$ 3,633	36.42%

The net deferred tax assets in the accompanying balance sheets include the following components:


	2017	2016
Deferred tax assets
Allowance for loan losses	$ 2,893	$ 3,890
Deferred compensation	2,142	2,520
OREO valuation allowance & expenses	337	413
Unrealized loss on investment securities	452	605
Depreciation	29
Other	142	509
	5,995	7,937
Deferred tax liabilities
FHLB stock dividends	109	156
Depreciation	-	15
	109	171

	$ 5,886	$ 7,766